Wildhorse Company has several processing departments. Costs to be accounted for in the Assembly Department for November 2022 totaled $2.294,466 as follows. Work in process, November 1 Materials Conversion costs Direct materials added during November Direct labor incurred during November Manufacturing overhead assigned during November $79.000 48,000 $127,000 1,599,560 225,100 342.806 $2.294,466 Production records show that 35,000 units were in beginning work in process 30% complete as to conversion costs, 664,400 units were started into production, and 25,100 units were in ending work in process 40% complete as to conversion costs. Materials are added at the beginning of each process, and conversion costs are incurred uniformly throughout the process.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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